Tata Motors seeks nod for taking help of group companies over Rs 60,000-crore Army tender

The peculiar contest — that pitches a Tata Motors-Bharat Forge combine against a joint venture of Tata Power SED and Titagarh Wagons — was one of the core disputes that led to the Tata-Mistry tussle, as reported earlier by ET.Manu Pubby | ET Bureau | December 24, 2016, 08:15 IST

NEW DELHI: Despite two Tata group companies at loggerheads over the Rs 60,000-crore future infantry combat vehicles (FICVs) order, Tata Motors said it hopes to draw on the expertise of Tata Power and other group companies, if the government permits it.

Tata Power SED is also in competition for the Indian Army tender. The peculiar contest — that pitches a Tata Motors-Bharat Forge combine against a joint venture of Tata Power SED and Titagarh Wagons — was one of the core disputes that led to the Tata-Mistry tussle, as reported earlier by ET.

Vernon Noronha, defence business head at Tata Motors, said two offerings were made by the group as it had two ‘distinct’ products to offer, but future cooperation was definitely on the cards. “There is absolutely no doubt that when the shortlist happens, and if allowed by the government, we would draw upon competencies of other companies, including Tata Power,” he said.

Top Indian private companies, including L&T and Mahindra Defence Systems, are targeting the mega order to set up a facility for combat vehicles that can also address the global market, with the much-awaited FICV project. The defence ministry is expected to take a call on shortlisting two companies that will develop prototypes for a final selection very soon.

As reported by ET, Ratan Tata was “dismayed” after the group made two bids for the prestigious army contract earlier this year — India needs over 2,600 future infantry combat vehicles. A board member who spoke to ET said Ratan Tata felt that two bids “made Tatas a laughing stock”. Tata was of the opinion that Tata Motors should combine with SED for the order.